Fidelity Investments launched a new thematic ETF today that could serve as a core or satellite U.S. equity position in an investor’s portfolio.
The Fidelity Stocks for Inflation ETF (FCPI) is designed to reflect the performance of stocks of large and mid-capitalization U.S. companies with attractive valuations, high quality profiles and positive momentum signals, emphasizing sectors and industries that have historically outperformed in periods of rising inflation.
Fidelity used its self-indexing capability to create the Fidelity Stocks for Inflation Factor Index. The fund could serve investors seeking inflation protection.
“We’re looking for opportunities to innovate where we can meet customer demand with exceptional value,” Colby Penzone, head of investment product, told ETF Trends. “Inflation protection is one of the categories where we believe Fidelity’s strengths and investment capabilities can be put to use to help investors personalize portfolios, aligned with their interests or market expectations.”
Greg Friedman, Head of ETF Management and Strategy at Fidelity Investments, told ETF Trends that “Fidelity Stocks for Inflation ETF complements our extensive ETF lineup joining Fidelity Dividend ETF for Rising Rates and Fidelity Low Volatility ETF in the Outcome Oriented thematic category.”
In addition to launching the FCPI ETF today, Fidelity also launched three new thematic mutual funds: Fidelity Enduring Opportunities Fund (FEOPX), Fidelity Infrastructure Fund (FNSTX), Fidelity U.S. Low Volatility Equity Fund (FULVX).
Thematic investing at Fidelity allows customers to invest directly in long-term trends and themes that best aligns with their interests or objectives, while accessing Fidelity’s differentiated investment research and portfolio management expertise. Through research and analysis, Fidelity has identified five categories of thematic investing: Disruption, Megatrends, Environmental Social and Governance (ESG), Outcome Oriented, and Differentiated Insights.
Today’s launch expands Fidelity’s thematic product lineup to 16 mutual funds and ETFs.
“Our new thematic investment products are another example of how we are expanding our investment capabilities to ensure that we’re continuing to deliver a differentiated and complete suite of investment products and solutions that meet the evolving needs of our customers, now and in the future,” Penzone said.
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